Hkcee 2010 Econ Paper 2 Q2 May 2026

HKCEE 2010 Economics Paper 2 Question 2 tests the concept of opportunity cost, with the correct answer, D, representing the highest-valued option foregone. The question typically requires distinguishing the next-best alternative from the sum of all forgone options or irrelevant costs. View the question in the HKCEE Economics Multiple Choice paper on HKCEE Economics Multiple Choice - Scribd

| Price ($) | Quantity Demanded (units) | Quantity Supplied (units) | |-----------|---------------------------|---------------------------| | 2 | 120 | 40 | | 4 | 100 | 60 | | 6 | 80 (Equilibrium) | 80 (Equilibrium) | | 8 | 60 | 100 | | 10 | 40 | 120 | hkcee 2010 econ paper 2 q2

Producer surplus (free market):

PS = area below price and above supply. [ PS_free = \frac12 \times (68 - 20) \times 16 = \frac12 \times 48 \times 16 = 384 ] Total surplus = ( 256 + 384 = 640 ). HKCEE 2010 Economics Paper 2 Question 2 tests

HKCEE 2010 Economics Paper 2, Question 2

The focuses on fundamental microeconomic concepts, specifically regarding Basic Concepts and the Three Basic Economic Problems . In the context of the Hong Kong Certificate of Education Examination (HKCEE), "Paper 2" refers to the Multiple Choice section. Question Analysis: HKCEE 2010 Econ P2 Q2 Shade the Revenue rectangle

• Shade the Revenue rectangle.
• Shade the Consumer Surplus triangle.
• Compare the size of the new shaded areas to the old ones.

Understanding the Question:

• Price decreases ($P_max < P_eq$).
• Quantity decreases ($Q_s < Q_eq$).
• Therefore, Total Revenue decreases.

A second part of Q2 often introduced a change in the market for a substitute. For example: “Suppose the government reduces the fare of the MTR. At the same time, a new bus route with lower fares is introduced. Explain the combined effect on the total revenue of the MTR company.”

once paid; they do not change the value of the next best alternative (the rent you could receive) in the context of current decision-making. Incorrect Option (C): An increase in business profit reflects the return on your activity, not the value of the alternative you gave up. Further Exploration Access a comprehensive compilation of past answers from to verify year-by-year trends.